Betsy Johnson Regional Hospital

Employment Benefits Summary
Effective Date: July 1, 2010

Disclaimer: This is only a brief overview of employee benefits; please refer to the summary plan description, the plan document or contact the Human Resources Department for more detailed information.

BENEFITS AVAILABLE TO ALL EMPLOYEES

A. RETIREMENT PLANS Pension Plan - defined benefit plan

HARNETT HEALTH provides a "defined benefit" pension plan for employees who work 1000 hours during the calendar year. Employees are vested after five years of service in the plan. The cost of the plan is paid entirely by Harnett Health. Benefits are provided based on a predetermined formula, based on years of vested service and final average compensation

403-b Retirement Savings Plan - defined contribution plan

Employees who work at least 1250 hours per year are eligible to contribute to the 403-b plan. HARNETT HEALTH matches employee contributions into a 403-b tax deferred savings plan. Following one year in the plan, HARNETT HEALTH contributes a 25% match of the first 4% of salary the employee saves. Employee contributions always belong to the employee. Employees are vested, or have ownership rights, to the matching account on a stepped basis that reaches 100% after 5 years of service.

B. EMPLOYEE ACTIVITIES

Service Awards and Employee Recognition Banquet - each year employees with multiples of five (5) years' service are recognized.
Holiday Festivities - employees have the opportunity to get involved in holiday activities in November and December, including a Craft Fair, holiday meal, etc.

MISCELLANEOUS BENEFITS

Credit Union Partnership (SECU)
Direct deposit of payroll checks
Educational opportunities provided on-site
Employee Health services
Employee incentive plan
Free parking
Gift shop (allows payroll deductions for employees)
Medical Library
Payroll Deduction
Scholarship Programs
Shift Differentials
Subsidized cafeteria
Subsidized Wellness Works Program
Tuition Reimbursement

C. BENEFITS AVAILABLE TO FULL-TIME AND PART-TIME EMPLOYEES:

All insurance coverage's are effective the first of the month following 30 days of employment. Benefit deductions are taken from pay on a biweekly basis for the month they are due. To provide competitive employee-paid premiums, HARNETT HEALTH subsidizes all core benefit options.

MEDICAL INSURANCE PLANS – BCBS of NC

Blue Options Consumer Choice: Free preventive care, deductible, coinsurance
Blue Option PPO Comprehensive: Co-pays for office visits and prescriptions, deductible and coinsurance for other services

BCBSNC CONSUMER CHOICE
Medical Plan Benefit Summary Effective July 1, 2010

	Preferred Benefits Harnett Health	In-Network Benefits	Out-of-Network Benefits
Deductible
-Individual	$1,500	$2,000	$4,000
-Family	$3,000	$4,000	$8,000
Out-of-Pocket Maximum
-Individual	$3,500	$4,000	$8,000
-Family	$7,000	$8,000	$12,000
Hospitalization	90% after Deductible	80% after Deductible	50% after Deductible
Out Patient Surgery	90% after Deductible	80% after Deductible	50% after Deductible
Urgent Care	80% after Deductible	80% after Deductible	50% after Deductible
Emergency Room	90% after Deductible	80% after Deductible	50% after Deductible
Physician Visit	80% after Deductible	80% after Deductible	50% after Deductible
Specialist Visit	80% after Deductible	80% after Deductible	50% after Deductible
Preventive Care	100%	100%	50% after Deductible
Prescription Drugs:
Deductible
-Generic	80%*	80%*	80%*
-Preferred Brand
-Brand
-Specialty

* Maximum member cost on brand drug at $150 and specialty drug $250 per 30 days
** Out of Network Prescriptions are Co-pay/Coinsurance plus charge over In-Network allowed amount.

BCBSNC PPO
Medical Plan Benefit Summary Effective July 1, 2010

	Preferred Benefits Harnett Health	In-Network Benefits	Out-of-Network Benefits
Deductible
-Individual	$1,500	$2,000	$4,000
-Family	$3,000	$4,000	$8,000
Out-of-Pocket Maximum
-Individual	$3,500	$4,000	$8,000
-Family	$7,000	$8,000	$12,000
Hospitalization	90% after Deductible	80% after Deductible	50% after Deductible
Out Patient Surgery	90% after Deductible	80% after Deductible	50% after Deductible
Urgent Care	$50 Co-Pay	$50 Co-Pay	$50 Co-Pay
Emergency Room	$150 Co-Pay	$200 Co-Pay	$200 Co-Pay
Physician Visit	$25 Co-Pay	$25 Co-Pay	50% after Deductible
Specialist Visit	$50 Co-Pay	$50 Co-Pay	50% after Deductible
Preventive Care	100%	100%	50% after Deductible
Prescription Drugs:
Deductible	$0	$0	$0
-Generic	$10 Co-pay	$10 Co-pay	$10 Co-pay**
-Preferred Brand	$30 Co-pay	$30 Co-pay	$30 Co-pay**
-Brand	$60 Co-pay	$60 Co-pay	$60 Co-pay**
-Specialty	75%*	75%*	75%*

*Minimum $50 to $150 maximum member cost on specialty drugs
** Out of Network Prescriptions are Co-pay/Coinsurance plus charge over In-Network allowed amount.

DENTAL INSURANCE PLANS – Guardian Dental

Basic - Preventive and Basic care only
Enhanced - Preventive, basic, and major services covered, orthodontic benefits

The Guardian Dental plan allows you to seek treatment from any dentist of your choice. A dental PPO works much like a medical PPO – you have access to a network of dental providers and can choose to visit a dentist in- or out-of-network.

The PPO pays benefits at the same level whether you receive care from in-network or out-of-network providers. Your out-of-pocket costs will be reduced, however, when you stay in the PPO network. Why? Because our PPO providers have agreed to offer Harnett Health System employees lower negotiated fees for covered services. In addition, in-network providers will also file the claim for you and cannot balance bill you the difference between the negotiated rate and their normal rate. Out-of-network providers do not have to accept the negotiated rates and can bill you for the difference. For questions and assistance concerning your dental benefits, contact Guardian at 1-800-541-7846.

Guardian Dental Basic Benefit Summary

Services	Amount You Pay
Deductible	$50 Individual Deductible – paid by the each covered member each year.
Maximums	$750 Annual Maximum per covered member
Preventive Services	Covered at 100% includes comprehensive exams, cleanings, fluoride treatment, stainless steel crowns, x-rays, and sealants, space maintainers.
Basic Services	Covered at 80% includes fillings, simple extractions, stainless steel crowns, and treatment for pain.
Major Services	n/a
Orthodontics	n/a

Guardian Dental
Enhanced Benefit Summary

Services	Amount You Pay
Deductible	$50 Individual Deductible – paid by the each covered member each year.
Maximums	$1,500 Annual Maximum per covered member – $1,500 Lifetime Maximum for orthodontia
Preventive Services	Covered at 100% includes comprehensive exams, cleanings, fluoride treatment, stainless steel crowns, x-rays, and sealants, space maintainers.
Basic Services	Covered at 80% includes fillings, treatment for endodontics, periodontics simple extractions, stainless steel crowns, and treatment for pain
Major Services	Covered at 50% includes crowns, bridges and dentures, repairs and adjustments.
Orthodontics	Covered at 50% includes appliances and related services for children up to age 19
Rollover Feature	Portion of unused annual maximum will be rolled over into personal Maximum Rollover Account (MRA). The MRA can be used in future years, if a member reached the plan’s annual maxim

VISION INSURANCE - Opticare

One eye exam every 12 months
Lenses or contacts once every 12 months

Harnett Health Systems offers full-time employees the option of Voluntary Vision coverage through OptiCare. OptiCare’s extensive provider panels are contracted to provide substantial savings for optical products and services. Members can locate an in-network provider by calling 1-877-615-7732 or visiting www.myvisionplan.com.

	In-Network	Out-of-Network
Eye Exam	$10 Co-Pay	Up to $38.50 + Co-Pay
Lenses (per pair)
Single	$10 Co-Pay	$37.50 + Co-pay
Bifocal	$10 Co-Pay	$55.00 + Co-Pay
Trifocal	$10 Co-Pay	$90.00 + Co-Pay
Lenticular	$10 Co-Pay	$90.00 + Co-Pay
Plan Frequencies	Exam every 12 months
	Lenses Every 12 months
	Frames every 24 months
	Contacts every 12 months
Frames	$135 allowance	$94.50 allowance
Contact Lenses	$125 allowance	$87.50 allowance

LIFE INSURANCE - Lincoln

At no cost to the employee, full-time employees receive 1.5x their projected annual base salary in life insurance. Part-time employees receive life insurance in the amount of $20,000. Life insurance benefit amounts are prorated once an employee reaches age 70.

SUPPLEMENTAL LIFE INSURANCE - Lincoln

Employees may purchase $50,000, $100,000, or $150,000 of guaranteed issue life insurance for themselves; $20,000 on their spouse; and $5,000 or $10,000 on their children (include the age for dependent children).

FLEXIBLE SPENDING ACCOUNTS – IMS (Interactive Medical Services)

Medical Spending Account (up to $3000 per year)
Dependent Care Spending Account (up to $5000 per year, if married filing jointly)

EMPLOYEE ASSISTANCE PLAN - Lincoln

Completely Confidential
Up to three free face-to-face counseling sessions with a professional per year for employee and/or dependents
Online Referral Services Available
Travel Assistance

SUPPLEMENTAL BENEFITS – Allstate

Accident
Cancer
Critical Illness
Whole Life Insurance

D. AVAILABLE TO FULL-TIME EMPLOYEES ONLY:

SHORT-TERM DISABILITY INSURANCE - Lincoln

Harnett Health System offers full-time employees Voluntary Short Term Disability coverage. This benefit provides a partial monthly income replacement while you are continuously disabled by injury or illness for an extended period of time. If you do not elect this benefit when first eligible but wish to enroll at a later date, Evidence of Insurability will be required. Cost is based on salary. Changes in salary are updated annually.

Benefits Begin	14th Day for Accident, 14th Day for Illness
Maximum Benefit Duration	24 Weeks
Percentage of Income Replaced	60% Maximum
Weekly Benefit	$1,000

LONG-TERM DISABILITY INSURANCE - Lincoln

Harnett Health System provides full-time employees with Long Term Disability coverage and pays the full cost of this benefit. This benefit provides a partial monthly income replacement while you are continuously disabled by injury or illness for an extended period of time. Employees are not required to complete an application for this benefit as they are automatically enrolled.

Benefits Begin	After a 180 Day Waiting Period
Maximum Benefit Duration	Social Security Normal Retirement Age
Own Occupation Period	2 Year Own Occupation
Percentage of Income Replaced	60%
Maximum Monthly Benefi	$10,000 per Month

E. PAID TIME OFF

Paid Time Off Full-time employees accrue the same amount of PTO hours (holiday, vacation, sick and personal time) each pay period in which a minimum of 72 hours is paid or 40 hours for Part-time employees. The amount of accrual is based on length of service and a meeting the minimum paid hour requirements each pay period. PTO accrual is indicated in the table below.

Length of Service Accrual	Estimated Annual Accrual		Estimated Accrual Per Pay Period
	Full Time	Part Time	Full Time	Part Time
Date of Hire - 2 years	208 hours	68 hours	8.00 hours	2.62 hours
2-5 years	232 hours	80 hours	8.92 hours	3.08 hours
5-10 years	248 hours	80 hours	9.54 hours	3.08 hours
10-15 years	288 hours	80 hours	11.08 hours	3.08 hours
15+ years	328 hours	80 hours	12.62 hours	3.08 hours

Bereavement Leave: (Available to full-time employees only)

Full-time employees receive paid bereavement leave for up to three consecutive working days, per death of immediate family members.

Jury Duty Leave: (Available to full-time and part-time employees)

Full-time and part-time employees receive paid leave for the duration of the jury duty assignment.

DEFINITIONS
A. ASSIGNED HOURS

Number of hours employee is assigned to work each pay period in the payroll system.

B. ANNUALIZED SALARY

To determine annualized salary, multiply your hourly pay rate times the number of hours you are assigned to work each pay period, then multiply that amount times 26.

C. BI-WEEKLY

Every other week, 26 times per year. This is the number of times employees have benefit deductions taken from their paychecks.

D. PRE-TAX DEDUCTION

Premiums that employees' pay for medical, dental, and disability insurance are not subject to state, federal and FICA (social security) tax. 403-b contributions are not subject to state and federal tax, but are subject to FICA.

E. FULL-TIME EMPLOYEES

Regular (non-temporary) employees assigned at least 72 hours per pay period. This also includes Baylor staff hired to work 64 hours per pay period including every weekend.

F. PART-TIME EMPLOYEES

Regular (non-temporary) employees assigned between 40 and 71 hours per pay period.

G. PRN TEMPORARY EMPLOYEES

Employees hired to work on an as-needed or temporary basis, less than 40 hours per pay period.